The Truthful Market Worth of Bitcoin Held by Tesla in 2022 Is $191 Million, and the Impairment Loss Is $204 Million

Tesla’s current annual report for the yr ended December 31, 2022, filed with the US Securities and Change Fee (SEC) confirmed the honest market worth of the electrical automobile firm’s bitcoin holdings to be $191 million. The report additionally recorded $204 million of impairment losses ensuing from adjustments within the costs of bitcoin.

Tesla’s Funding in Digital Property and Bitcoin

Tesla, led by billionaire Elon Musk, filed its annual report for 2022 with the SEC on Monday. The submitting confirmed the honest market worth of Tesla’s bitcoin holdings to be $191 million on the finish of the yr, with a carrying worth of $184 million. The report famous that throughout the two years ended December 31, 2022, the corporate bought and acquired $1.5 billion of digital belongings, of which bitcoin accounted for almost all.

The electrical automobile firm invested $1.5 billion in bitcoin in Q1 2021 however offered 75% of its holdings in Q2 2022 on account of considerations concerning the firm’s general liquidity. The report additionally mentions the corporate accepting dogecoin for some merchandise, which accounted for an “immaterial quantity” of digital belongings.

Tesla’s Impairment Losses from Bitcoin

In keeping with the SEC submitting, digital belongings are thought of “indefinite-lived intangible belongings” and any lower of their honest worth beneath their carrying worth will lead to impairment costs. Consequently, Tesla recorded $204 million in impairment losses for the yr ended December 31, 2022, ensuing from adjustments to the carrying worth of their bitcoin. The corporate additionally recorded good points of $64 million on sure conversions of bitcoin into fiat foreign money.

The corporate solely offered its bitcoin as soon as in Q2 2022, promoting 75% of its holdings, including $936 million in money to its steadiness sheet. CEO Elon Musk acknowledged on the time that the corporate was “actually open to growing our bitcoin holdings in [the] future” and the sale was on account of considerations concerning the firm’s general liquidity.

Tesla’s SEC submitting highlights the electrical automobile firm’s funding in digital belongings and bitcoin, with a good market worth of $191 million and impairment losses of $204 million for the yr ended December 31, 2022. The corporate stays open to growing its bitcoin holdings sooner or later and will make adjustments to its digital belongings primarily based on enterprise wants and market and environmental situations.